The reason Steemit isn't Ponzi scheme. [4 minutes read]

 

 Many people is wondering why some account on Steemit has more than one million Steem Power, while we just start with ten.

Will it be possible for a user registering today, or the next year, to reach 1 million Steem Power ?

If it is not possible, this would sound pretty unfair for a service  that aspires to revolution the social networks and the world economy.

As a poker player, I would prefer sit in a game where my opponent is likely  to be a tougher player than me. Because I know this is the only way to  improve my game, and to get precious information about the best players  in my game.

Also if the founders of Steemit have reserved for themselves a big  part of the cake, we can be optimistic about the future, because if they  try to transform this site in a speculation, they will just sit with a  ton of Steem in their hands... but Steem will be worth nothing!

this is how a Ponzi scheme works:

A guy, let's call him Bob Ponzi, offer the chance to make a very  interesting investment, offering a very big interest rate. For example  6% every month. People start investing small amounts of money, and Ponzi  repays their investment. As the market start believing in this  investment, people start committing an exponential amount of money. Mr  Ponzi pays the interest with the money of new subscribers. At a certain  point, he runs away with the money.

Why Steemit isn't a Ponzi Scheme ?

it's simple:

because doing a similar thing with Steem would just decrease the  value of Steem. So mr Ponsteem... would millions of a currency worth just nothing!!!

For sure the reward system will need some fix to avoid that only the  most powerful accounts control all the system.